BBC Studios is prepared to plough resource into its scripted and entertainment offerings as CEO Tom Fussell stresses the group’s “long term mandate” amid global market contraction.
Fussell was joined by his new productions boss Zai Bennett at yesterday’s BBC Studios Showcase and the pair gave Deadline an insight into short, medium and long-term thinking.
For Bennett, who joined from Sky late last year, “maintaining our creative momentum” by investing in scripted and entertainment is the first priority.
“In scripted we are looking at whether there are investments we want to make in individuals or whether there are labels that have all the resources they need,” said Bennett. “How can we help them? They have brilliant relationships and I need to make sure the people running those labels have the environment and resources they need to back that up.”
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BBC Studios wholly owns the likes of Baby Reindeer producer Clerkenwell Films, Conclave maker House Productions and Gentlemen Jack indie Lookout Point, the latter of which has a “wonderful announcement” incoming, according to Fussell.
Driven by negative shifts in the American market, both Fussell and Bennett were honest about the difficulties that have arisen from market contraction. But Bennett insisted that BBC Studios’ role as an integrated producer-distributor, which has fully owned streamer BritBox since last year, means it can still take calculated risks. He pointed to one of BBC Studios’ big Showcase priorities, Mitford sisters drama Outrageous, which is made by a BBC Studios-owned label, sold by BBC Studios and commissioned for BBC Studios-owned UKTV and BritBox. A different approach is Wild Cherry, Nicôle Lecky’s latest turn-the-dial series, which is made for the BBC and deficit financed by BBC Studios, and is being shopped to American buyers this week.
“It’s not just about saying, ‘Well this show cost £1.5M ($1.9M) and we make [profits of] £200,000,” explained Bennett. “We need to take some risk and say, ‘Well this one is a bit risky for [BBC Drama Boss] Lindsay [Salt] but we will join her in the risk and hopefully make it come good.”
Coming off the back of the runaway success of Baby Reindeer, a local show about a Scottish comedian and his experience with a stalker, Bennett stressed that “often it is the shows you don’t realize” which make the biggest splash.
While BBC Studios’ labels have been generating hits, the in-house BBC Studios Drama Productions has had a quieter time, losing the Doctor Who production contract and seeing its chief Priscilla Parish exit, replaced by Kate Oates.
Fussell said there is no longer a distinction between BBC Studios Drama Productions and the group’s labels. “Whether they’re a scripted label, a scripted unit or they came from public service it doesn’t matter, we have brilliant people running these,” he added.
On Doctor Who, off the back of reports that the future of the BBC-Disney+ deal is still unsteady, neither Fussell or Bennett would be drawn on what will happen beyond Ncuti Gatwa’s second season. “We have a great partnership with Disney and the BBC on Doctor Who and we wait to see how Season 2 is going but it looks fantastic,” said Fussell.
Bennett also has plans on the entertainment side. He is seeking more opportunities in the reality and factual entertainment space, areas that “have not had as much success in recent times” – Top Gear, for example, was taken off air due to the devastating injury to host Andrew Flintoff. To that end, Bennett has brought in ex-Channel 4 youth TV boss Karl Warner and acquired Samphire Pictures, the indie run by Fox’s Special Forces: World’s Toughest Test creator Sophie Leonard and David Hodgkinson
Another intriguing hire is BBC natural history commissioning boss Sreya Biswas, who Bennett said will lead an adventure and travel push at the cheaper end of the natural history budget range, which can touch £2M to £3M per episode on big tentpoles such as the Tom Hanks-narrated The Americas and the Walking With Dinosaurs epic. Both were major talking points at the splashy BBC Studios Showcase, with attendees treated to some dinosaur-themed pyrotechnics.
“Long-term mandate”
Back in the interview, and zooming out, Fussell stressed on several occasions that BBC Studios has a “long term mandate” due to its relationship with BBC public service and the ties it has with British creatives. “I can see disruption in the short term but our long-term mandate is to carry on investing in British creativity and creativity around the world, and to grow our cashflow,” he said.
“What we do is unique. I can’t think of anyone else who has the most streamed show in the U.S. at the moment,” added Fussell, referencing smash children’s hit Bluey.
Results at BBC Studios were down last year, with turnover dipping below £2B and EBITDA tumbling by around 20% to £202M.
Fussell has a lofty target for the producer-distributor to double revenues to £3.2B by 2027-28 and he told us he is confident things will turn around this year, pointing out that 2024 included a hefty £255M payout to buy the portion of BritBox the outfit did not own.
“I’m really happy with the results we had last year because we are investing a huge amount,” said Fussell. “If you buy things inorganically and invest in inorganic things like BritBox and the UKTV rebrand then you can see how these investments are going to give you a short-term EBITDA hit. We are well on track with where we want to be at the moment.”
Next week, Fussell and Bennett head to the Oscars, where hopes are high for Conclave.
While in L.A., Fussell said the team will have meetings with all the big American players.
“As our strategies evolve we need to pivot to make sure we adapt to that demand,” he added. “BritBox works to a certain level of budget but we are working with all of [the key American players] on bigger scale shows. That’s why we desire to meet them.”
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